What is a super lien?

  • If a homeowner does not pay homeowners’ association (HOA) fees and special assessments then the HOA can file a lien that will attach to the property. 
  • In certain states however, homeowners’ association liens are given “super lien” status.
      • A super lien is a category of lien that, pursuant to state statute, is given a higher priority than all other types of liens.
      • A super lien is given higher priority than even the first mortgage holder, placing the interest of the HOA in front of the first mortgage.

How many states have super lien laws?

  • 22 states have laws that give HOA or in some cases COA (Condo Association) assessment liens a super lien status under certain circumstances.
  • Alabama, Alaska, Colorado, Connecticut, Delaware, District Of Columbia, Florida, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, Nevada, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Washington, and West Virginia.
  • Every state has different statues.

What happens when the 1st mortgage forecloses?

  • Florida – if obtain title through foreclosure or DIL an amount of 12 months of HOA dues preceding the date of the sale or 1% of the original loan amount whichever is less.
  • Pennsylvania – an amount equal to 6 months preceding the date of the sale.
  • Maryland – lien priority is given to any HOA or COA that holds a lien on the property for 4 months worth of unpaid expenses or $1,200, whichever is less.
  • In contrast 28 states like NC, SC, etc – the HOA gets wiped when the 1st mortgage forecloses (i.e. they get nothing).